SEC Chair Paul Atkins has linked his push for clearer crypto regulation to a broader effort to reshape corporate governance. In recent comments and interviews, he outlined plans for a new token framework while also signaling stricter rules for proxy advisory firms.
Atkins said the SEC will consider reforms that curb the influence of proxy advisors that guide institutional investors on shareholder votes. He noted that firms such as Institutional Shareholder Services and Glass Lewis hold significant sway over decisions on board elections, pay packages, and corporate policy.
He argued that some governance activists use shareholder resolutions to pursue political goals. Under potential changes, the SEC could require more transparent standards for institutional voting and limit the ability of outside advisers to shape outcomes. Large index fund managers, including BlackRock and Vanguard, also face closer scrutiny because of the voting power they exercise in listed companies.
Atkins plans to align these governance changes with a new approach to digital asset regulation. He stated that current rules rely on legal tests designed for paper-era securities rather than decentralized networks. In his view, enforcement actions alone cannot provide the predictability that crypto developers, exchanges, and investors need.
Under a draft taxonomy, the SEC would group digital assets into digital commodities, digital collectibles, digital tools, and tokenized securities. Only the last group would fall under the agency’s core securities mandate. Atkins also stressed that a token can move out of securities status if a project moves from fundraising to a more decentralized and functional network.
He said most crypto tokens in circulation would not qualify as securities under this approach. The Commission intends to work with the Commodity Futures Trading Commission and banking regulators to reduce overlaps and close gaps in oversight. Acting CFTC Chair Caroline Pham has signaled that her agency aims to support regulated spot trading of crypto assets on registered exchanges next year.
Congress and other agencies also move ahead with digital asset rules. The Senate Agriculture Committee has introduced a draft framework for digital asset commodities. The Treasury Department and the Internal Revenue Service have issued guidance that allows exchange-traded products to stake crypto and pass rewards to investors.
Atkins described these initiatives as part of a shift toward clearer, more predictable crypto regulation and more transparent corporate governance. He said the SEC will release detailed proposals on both crypto classification and proxy advisory reforms over the coming year. Market participants worldwide watch how quickly these plans turn into new binding rules for digital assets.